RE Royalties- The Royalty Model

An opinion piece by Fabian Lorenz (Apaton Finance GmbH).

In the renewable energy sector, RE Royalties has an interesting and perhaps even unique business model. As is common in mining, projects are financed under a royalty model. The loans are often repaid within a few years, and the capital is then available to RE Royalties for new investments. The royalty payments, on the other hand, run for 20 years or more. The company targets projects in proven renewable technologies, including solar, wind, hydropower, and energy storage.

As RE Royalties is very active in the US, it benefits from the energy requirements of AI data centers. Since its cooperation with US project developer Solaris Energy, investors have increasingly taken notice of this development. As part of the collaboration, RE Royalties has already invested a total of USD 4.8 million in 15 projects in various US states, with the first projects already nearing commissioning. RE Royalties and Solaris Energy intend to continue working closely together

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